elgato
Joined: 24 Feb 2005
Posts: 17240
Location: Texas
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| Posted: Thu Jan 19, 2012 10:03 am Post subject: Netflix sued for securities fraud |
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A class-action complaint alleges Netflix Inc. executives helped inflate the retailer's stock price by making misleading statements about the video rental service. Netflix's stock plunged more than 30% over three days last fall.
Last year, Netflix Inc. executives misled investors into thinking business was booming while they raked in $90 million dollars from selling their own company shares before the stock plummeted, alleges a class-action complaint filed by investors this week in California.
The complaint against Netflix, No. 13 in Internet Retailer’s Top 500 Guide, alleges that from Dec. 20, 2010, to Oct. 24, 2011, company executives gave false statements to investors in violation of the Securities and Exchange Act of 1934 regarding its business practices and relationships with content providers. The complaint says these statements led to an inflated stock price that peaked July 13, 2011, at nearly $300 per share.
The complaint alleges executives sold 388,661 shares of stock for proceeds of $90.2 million while the share price was high.
http://www.internetretailer.com/2012/01/18/netflix-sued-securities-fraud |
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